Google comments on Microsoft’s bid for Yahoo

Yesterday Google came out with a full, sanctioned, comment on the possibility of Microsoft’s takeover of Yahoo!

The Microsoft bid has been interpreted by Google as hostile, and the tone of Steve Balmer’s email to Yahoo!’s board doesn’t suggest otherwise. In fact the email of January 31^st refers to a letter that he received in February 2007 from Yahoo!’s chairman Roy Bostock, Bostock is reported to have said "now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction"- so, has anything changed since then?

In a word "no". Ballmer bangs on about the commercial benefits to both parties, but after a thorough read its clear that Microsoft would act with hostility should their softly-softly approach fall on deaf ears:

"Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal"- while this might be standard "bid" lingo its not the type of thing that would make you warm to the offer is it?…

…and Google agrees. David Drummond (Senior Vice President, Corporate Development and Chief Legal Officer- sounds like a busy guy) says that the bid is pretty much a rubbish idea. His objections are fundamental "It’s about preserving the underlying principles of the Internet: openness and innovation".

Drummond questions the intention of the bid and doesn’t mince his words. He sees it as a covert attempt for Microsoft to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC. But then he would, wouldn’t he? With this situation Google could be facing the biggest threat to their seniority ever, and as t

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